HCTI

Healthcare Triangle is a $3.7M-market-cap healthcare-IT services firm (43 full-time employees per the 10-K) whose story is one of secular decline masked by a small one-year rebound. Revenue rose 18.8% to $13.9M in FY2025, but that follows a collapse from $45.9M in FY2022 and $33.2M in FY2023 — the business has lost roughly 70% of its top line in three years, and management concedes its SaaS platforms (CloudEz, DataEz, Readabl.AI, Ziloy, Ezovion) are 'still in the early stages of scaling' with insufficient data to know whether subscription revenue will ever move the needle. This is a shrunken consulting shop, not a growth software company, and it has never earned a profit: FY2025 net loss widened to -$9.48M (net margin -68.2%, operating margin -70.5%, ROE -95.3%), and the accumulated deficit stands at -$43.0M.

The balance sheet is where 'avoid' becomes non-negotiable. Operating cash flow was -$16.5M for FY2025 against just $7.63M of cash — well under a year of runway at the current burn. Current debt (short-term borrowings) ballooned 305% to $10.7M, exceeding the entire cash balance, while current assets ($13.2M) barely cover current liabilities ($12.8M). A company burning $16.5M a year with $7.6M in the bank and $10.7M of debt due inside twelve months has a financing gap it can only close through dilution or new borrowing — and shares outstanding already collapsed 95.6% to 1.97M, the fingerprint of a reverse split done to hold the Nasdaq listing (diluted EPS of -$152.30 reflects that split, not real per-share economics).